82_FR_47784 82 FR 47588 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule

82 FR 47588 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 196 (October 12, 2017)

Page Range47588-47590
FR Document2017-21998

Federal Register, Volume 82 Issue 196 (Thursday, October 12, 2017)
[Federal Register Volume 82, Number 196 (Thursday, October 12, 2017)]
[Notices]
[Pages 47588-47590]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-21998]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81828; File No. SR-NYSEAMER-2017-22]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Change To Modify the 
NYSE American Options Fee Schedule

October 5, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on October 4, 2017, NYSE American LLC (the ``Exchange'' or 
``NYSE American'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule (``Fee Schedule''). The Exchange proposes to implement the fee 
change effective October 4, 2017.\4\ The proposed change is available 
on the Exchange's Web site at www.nyse.com, at the principal office of 
the Exchange, and at the Commission's Public Reference Room.
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    \4\ The Exchange originally filed to amend the Fee Schedule on 
September 29, 2017 (SR-NYSEAmer-2017-20) and withdrew such filing on 
October 4, 2017.
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to modify the Fee Schedule, effective 
October 4, 2017. Specifically, the Exchange proposes to (i) modify the 
monthly rates for certain American Trading Permits (each an ``ATP''); 
and (ii) reduce the Messages to Contracts Traded Ratio Fees.
Monthly ATP Fees
    NYSE American Market Makers (each, an ``MM'') must have a certain 
number of ATPs each month in order to submit electronic quotations in 
option issues in their appointment.\5\ The Exchange currently employs a 
sliding scale for the cost to each MM per ATP, with the amount 
decreasing as the number of ATPs utilized increases, as follows: \6\
---------------------------------------------------------------------------

    \5\ See Fee Schedule, Section III.A. (Monthly ATP Fees), 
available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf.
    \6\ See id. (providing, in relevant part, that ``[e]ach calendar 
quarter, with a one-month lag, the Exchange will publish on its Web 
site a list of the Bottom 45% of issues traded'').

------------------------------------------------------------------------
                                                     Number of issues
                                   Monthly fee    permitted in a market
            ATP type                 per ATP          makers quoting
                                                        assignment
------------------------------------------------------------------------
MM 1st ATP.....................          $8,000  60 plus the Bottom 45%.
MM 2nd ATP.....................           6,000  150 plus the Bottom
                                                  45%.
MM 3rd ATP.....................           5,000  500 plus the Bottom
                                                  45%.
MM 4th ATP.....................           4,000  1,100 plus the Bottom
                                                  45%.
MM 5th ATP.....................           3,000  All issues traded on
                                                  the Exchange.
MM 6th or more ATPs............           2,000  All issues traded on
                                                  the Exchange.
------------------------------------------------------------------------

    Thus, an MM that would like the privilege of quoting in all issues 
traded on the Exchange must have at least five ATPs. And, if an MM firm 
sponsors multiple individual MMs, the MM firm must pay for the 
requisite number of ATPs for each individual MM to submit quotes on the 
Exchange. For example, assume an MM firm has three individual MMs and 
that each MM needs to be able to submit quotes in all issues traded on 
the Exchange. In this example, the MM firm would have to pay for 15 
ATPs (five for each individual MM).

[[Page 47589]]

    The Exchanges proposes to modify its monthly ATP rates such that it 
will charge $2,000 for the 6th, 7th, 8th, and 9th ATP and would charge 
$500 per month for the tenth or additional ATPs. The Exchange believes 
that this proposed reduction in ATP fees would encourage MM firms to 
have more individual MMs to quote on the Exchange, which will in turn 
encourage liquidity and depth of markets.
Messages to Contracts Traded Ratio Fees
    The Exchange proposes to modify the Messages to Contracts Traded 
Ratio Fees (``Messages Fee''), which are assessed as part of the 
Monthly Excessive Bandwidth Utilization Fees.\7\ Currently, the 
Exchange charges $0.01 per 1,000 messages (including orders or quotes) 
in excess of 1.5 billion messages in a calendar month if the ATP Holder 
does not execute at least 1 contract for every 1,500-5,000 messages 
entered, as determined by the Exchange.\8\ The Exchange proposes to 
reduce this rate from $0.01 to $0.005. The Exchange believes this 
reduced rate would still encourage market participants to be rational 
and efficient in the use of the Exchange's system capacity.
---------------------------------------------------------------------------

    \7\ See Fee Schedule, Section II (Monthly Excessive Bandwidth 
Utilization Fees) (``EBUF'') (describing both the Messages to 
Contracts Traded Ratio Fee and the Order to Trade Ratio Fee, which 
comprises the EBUF, and noting that if an ATP Holder is liable for 
either or both fees in a given month, that firm would only be 
charged the greater of the two fees). The Exchange is not modifying 
the Order to Trade Ratio Fees.
    \8\ Currently, the Exchange has set the ratio at 1 contract for 
every 5,000 messages.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\9\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\10\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed change to ATP fees is 
reasonable and not unfairly discriminatory because the fees are within 
the general range of similar fees assessed for trading permits on other 
exchanges.\11\ In addition, the proposed change relates to the cost of 
ATPs for MMs and are therefore are not unfairly discriminatory to non-
MMs because only MMs are required to submit quotations as part of their 
obligations to operate on the Exchange (resulting in the need for 
multiple ATPs). To the extent that the proposed fee encourages MM firms 
to have more individual MMs quoting on the Exchange, all market 
participant would benefit from competitive quoting that would increase 
opportunities to trade and enhance price discovery.
---------------------------------------------------------------------------

    \11\ See Chicago Board of Options Exchange (``CBOE'') fee 
schedule, Market-Maker Trading Permit Sliding Scale, p. 7, available 
here, http://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf 
(charging $5,000 per trading permit for the first ten permits); NYSE 
Arca Options Fee Schedule, NYSE Arca GENERAL OPTIONS and TRADING 
PERMIT (OTP) FEES, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf 
(imposing a sliding scale of fees, starting at $6,000 per month for 
the first trading permit down to $1,000 per month for the fifth and 
additional permits).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed reduction in the 
Messages Fees is reasonable, equitable, and not unfairly discriminatory 
because it should still encourage market participants to be rational 
and efficient in the use of the Exchange's system capacity, which 
benefits all market participants. The proposed reduced fee is 
reasonable because it would apply to all market participants that are 
subject to the Messages Fee.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\12\ the Exchange 
does not believe that the proposed rule change would impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes the proposed changes to 
the ATP fees are pro-competitive because the changes are consistent 
with similar fees on other options exchanges.\13\ The proposed change 
does not impose an undue burden on non-MMs as only MMs require multiple 
ATPs to satisfy quoting obligations on the Exchange. To the extent that 
the proposed change results in more competitive quoting, the proposed 
change is pro-competitive and should result in increased opportunities 
to trade as well as enhanced price discovery to the benefit of all 
market participants.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(8).
    \13\ See supra note 11.
---------------------------------------------------------------------------

    Similarly, the changes to the Messages Fees would not place an 
unfair burden on competition as it would continue to encourage 
efficient use of Exchange bandwidth and would apply to all market 
participants that are subject to the Messages Fee.
    To the extent that these purposes are achieved, the Exchange 
believes that the proposed changes would enhance the quality of the 
Exchange's markets and increase the volume of orders directed to the 
Exchange. In turn, all the Exchange's market participants would benefit 
from the improved market liquidity. If the proposed changes make the 
Exchange a more attractive marketplace for market participants at other 
exchanges, such market participants are welcome to become ATP Holders.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues. In 
such an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \14\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \15\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act.

[[Page 47590]]

Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEAMER-2017-22 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2017-22. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEAMER-2017-22, and should 
be submitted on or before November 2, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-21998 Filed 10-11-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                    47588                              Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

                                                    All submissions should refer to File                                   SECURITIES AND EXCHANGE                                II. Self-Regulatory Organization’s
                                                    Number SR–FINRA–2017–031. This file                                    COMMISSION                                             Statement of the Purpose of, and
                                                    number should be included on the                                                                                              Statutory Basis for, the Proposed Rule
                                                    subject line if email is used. To help the                             [Release No. 34–81828; File No. SR–                    Change
                                                    Commission process and review your                                     NYSEAMER–2017–22]
                                                    comments more efficiently, please use                                                                                           In its filing with the Commission, the
                                                    only one method. The Commission will                                   Self-Regulatory Organizations; NYSE                    self-regulatory organization included
                                                    post all comments on the Commission’s                                  American LLC; Notice of Filing and                     statements concerning the purpose of,
                                                    Internet Web site (http://www.sec.gov/                                 Immediate Effectiveness of Proposed                    and basis for, the proposed rule change
                                                    rules/sro.shtml). Copies of the                                                                                               and discussed any comments it received
                                                                                                                           Change To Modify the NYSE American
                                                    submission, all subsequent                                                                                                    on the proposed rule change. The text
                                                                                                                           Options Fee Schedule
                                                    amendments, all written statements                                                                                            of those statements may be examined at
                                                    with respect to the proposed rule                                      October 5, 2017.                                       the places specified in Item IV below.
                                                    change that are filed with the                                                                                                The Exchange has prepared summaries,
                                                    Commission, and all written                                               Pursuant to Section 19(b)(1) 1 of the
                                                                                                                           Securities Exchange Act of 1934 (the                   set forth in sections A, B, and C below,
                                                    communications relating to the                                                                                                of the most significant parts of such
                                                    proposed rule change between the                                       ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                                                                                           notice is hereby given that, on October                statements.
                                                    Commission and any person, other than
                                                    those that may be withheld from the                                    4, 2017, NYSE American LLC (the                        A. Self-Regulatory Organization’s
                                                    public in accordance with the                                          ‘‘Exchange’’ or ‘‘NYSE American’’) filed               Statement of the Purpose of, and the
                                                    provisions of 5 U.S.C. 552, will be                                    with the Securities and Exchange                       Statutory Basis for, the Proposed Rule
                                                    available for Web site viewing and                                     Commission (the ‘‘Commission’’) the                    Change
                                                    printing in the Commission’s Public                                    proposed rule change as described in
                                                    Reference Room, 100 F Street NE.,                                      Items I, II, and III below, which Items                1. Purpose
                                                    Washington, DC 20549, on official                                      have been prepared by the self-                          The purpose of this filing is to modify
                                                    business days between the hours of 10                                  regulatory organization. The
                                                    a.m. and 3 p.m. Copies of such filing                                                                                         the Fee Schedule, effective October 4,
                                                                                                                           Commission is publishing this notice to                2017. Specifically, the Exchange
                                                    also will be available for inspection and                              solicit comments on the proposed rule
                                                    copying at the principal office of                                                                                            proposes to (i) modify the monthly rates
                                                                                                                           change from interested persons.                        for certain American Trading Permits
                                                    FINRA. All comments received will be
                                                    posted without change; the Commission                                  I. Self-Regulatory Organization’s                      (each an ‘‘ATP’’); and (ii) reduce the
                                                    does not edit personal identifying                                     Statement of the Terms of Substance of                 Messages to Contracts Traded Ratio
                                                    information from submissions. You                                      the Proposed Rule Change                               Fees.
                                                    should submit only information that
                                                                                                                              The Exchange proposes to modify the                 Monthly ATP Fees
                                                    you wish to make available publicly. All
                                                    submissions should refer to File                                       NYSE American Options Fee Schedule                       NYSE American Market Makers (each,
                                                    Number SR–FINRA–2017–031 and                                           (‘‘Fee Schedule’’). The Exchange                       an ‘‘MM’’) must have a certain number
                                                    should be submitted on or before                                       proposes to implement the fee change                   of ATPs each month in order to submit
                                                    November 2, 2017.                                                      effective October 4, 2017.4 The                        electronic quotations in option issues in
                                                      For the Commission, by the Division of                               proposed change is available on the                    their appointment.5 The Exchange
                                                    Trading and Markets, pursuant to delegated                             Exchange’s Web site at www.nyse.com,                   currently employs a sliding scale for the
                                                    authority.16                                                           at the principal office of the Exchange,               cost to each MM per ATP, with the
                                                    Eduardo A. Aleman,                                                     and at the Commission’s Public                         amount decreasing as the number of
                                                    Assistant Secretary.                                                   Reference Room.                                        ATPs utilized increases, as follows: 6
                                                    [FR Doc. 2017–21994 Filed 10–11–17; 8:45 am]
                                                    BILLING CODE 8011–01–P


                                                                                                                                      Monthly fee
                                                                                   ATP type                                                               Number of issues permitted in a market makers quoting assignment
                                                                                                                                       per ATP

                                                    MM   1st ATP ..................................................................           $8,000     60 plus the Bottom 45%.
                                                    MM   2nd ATP ................................................................              6,000     150 plus the Bottom 45%.
                                                    MM   3rd ATP .................................................................             5,000     500 plus the Bottom 45%.
                                                    MM   4th ATP .................................................................             4,000     1,100 plus the Bottom 45%.
                                                    MM   5th ATP .................................................................             3,000     All issues traded on the Exchange.
                                                    MM   6th or more ATPs ..................................................                   2,000     All issues traded on the Exchange.



                                                      Thus, an MM that would like the                                      must pay for the requisite number of                   needs to be able to submit quotes in all
                                                    privilege of quoting in all issues traded                              ATPs for each individual MM to submit                  issues traded on the Exchange. In this
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    on the Exchange must have at least five                                quotes on the Exchange. For example,                   example, the MM firm would have to
                                                    ATPs. And, if an MM firm sponsors                                      assume an MM firm has three                            pay for 15 ATPs (five for each
                                                    multiple individual MMs, the MM firm                                   individual MMs and that each MM                        individual MM).
                                                      16 17 CFR 200.30–3(a)(12).                                             4 The Exchange originally filed to amend the Fee     publicdocs/nyse/markets/american-options/NYSE_
                                                      1 15 U.S.C.78s(b)(1).                                                Schedule on September 29, 2017 (SR–NYSEAmer–           American_Options_Fee_Schedule.pdf.
                                                      2 15 U.S.C. 78a.                                                     2017–20) and withdrew such filing on October 4,          6 See id. (providing, in relevant part, that ‘‘[e]ach

                                                      3 17 CFR 240.19b–4.
                                                                                                                           2017.                                                  calendar quarter, with a one-month lag, the
                                                                                                                             5 See Fee Schedule, Section III.A. (Monthly ATP      Exchange will publish on its Web site a list of the
                                                                                                                           Fees), available here, https://www.nyse.com/           Bottom 45% of issues traded’’).



                                               VerDate Sep<11>2014       22:35 Oct 11, 2017       Jkt 244001      PO 00000        Frm 00143   Fmt 4703   Sfmt 4703   E:\FR\FM\12OCN1.SGM   12OCN1


                                                                                Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices                                          47589

                                                       The Exchanges proposes to modify its                 change relates to the cost of ATPs for                proposed changes would enhance the
                                                    monthly ATP rates such that it will                     MMs and are therefore are not unfairly                quality of the Exchange’s markets and
                                                    charge $2,000 for the 6th, 7th, 8th, and                discriminatory to non-MMs because                     increase the volume of orders directed
                                                    9th ATP and would charge $500 per                       only MMs are required to submit                       to the Exchange. In turn, all the
                                                    month for the tenth or additional ATPs.                 quotations as part of their obligations to            Exchange’s market participants would
                                                    The Exchange believes that this                         operate on the Exchange (resulting in                 benefit from the improved market
                                                    proposed reduction in ATP fees would                    the need for multiple ATPs). To the                   liquidity. If the proposed changes make
                                                    encourage MM firms to have more                         extent that the proposed fee encourages               the Exchange a more attractive
                                                    individual MMs to quote on the                          MM firms to have more individual MMs                  marketplace for market participants at
                                                    Exchange, which will in turn encourage                  quoting on the Exchange, all market                   other exchanges, such market
                                                    liquidity and depth of markets.                         participant would benefit from                        participants are welcome to become
                                                                                                            competitive quoting that would increase               ATP Holders.
                                                    Messages to Contracts Traded Ratio Fees                 opportunities to trade and enhance                       The Exchange notes that it operates in
                                                       The Exchange proposes to modify the                  price discovery.                                      a highly competitive market in which
                                                    Messages to Contracts Traded Ratio Fees                    The Exchange also believes that the                market participants can readily favor
                                                    (‘‘Messages Fee’’), which are assessed as               proposed reduction in the Messages                    competing venues. In such an
                                                    part of the Monthly Excessive                           Fees is reasonable, equitable, and not                environment, the Exchange must
                                                    Bandwidth Utilization Fees.7 Currently,                 unfairly discriminatory because it                    continually review, and consider
                                                    the Exchange charges $0.01 per 1,000                    should still encourage market                         adjusting, its fees and credits to remain
                                                    messages (including orders or quotes) in                participants to be rational and efficient             competitive with other exchanges. For
                                                    excess of 1.5 billion messages in a                     in the use of the Exchange’s system                   the reasons described above, the
                                                    calendar month if the ATP Holder does                   capacity, which benefits all market                   Exchange believes that the proposed
                                                    not execute at least 1 contract for every               participants. The proposed reduced fee                rule change reflects this competitive
                                                    1,500–5,000 messages entered, as                        is reasonable because it would apply to               environment.
                                                    determined by the Exchange.8 The                        all market participants that are subject
                                                    Exchange proposes to reduce this rate                   to the Messages Fee.                                  C. Self-Regulatory Organization’s
                                                    from $0.01 to $0.005. The Exchange                                                                            Statement on Comments on the
                                                                                                         B. Self-Regulatory Organization’s                        Proposed Rule Change Received From
                                                    believes this reduced rate would still               Statement on Burden on Competition
                                                    encourage market participants to be                                                                           Members, Participants, or Others
                                                    rational and efficient in the use of the                In accordance with Section 6(b)(8) of                   No written comments were solicited
                                                    Exchange’s system capacity.                          the Act,12 the Exchange does not believe                 or received with respect to the proposed
                                                                                                         that the proposed rule change would                      rule change.
                                                    2. Statutory Basis                                   impose any burden on competition that
                                                       The Exchange believes that the                    is not necessary or appropriate in                       III. Date of Effectiveness of the
                                                    proposed rule change is consistent with furtherance of the purposes of the Act.                               Proposed Rule Change and Timing for
                                                    Section 6(b) of the Act,9 in general, and            The Exchange believes the proposed                       Commission Action
                                                    furthers the objectives of Sections                  changes to the ATP fees are pro-                            The foregoing rule change is effective
                                                    6(b)(4) and (5) of the Act,10 in particular, competitive because the changes are                              upon filing pursuant to Section
                                                    because it provides for the equitable                consistent with similar fees on other                    19(b)(3)(A) 14 of the Act and
                                                    allocation of reasonable dues, fees, and             options exchanges.13 The proposed                        subparagraph (f)(2) of Rule 19b–4 15
                                                    other charges among its members,                     change does not impose an undue                          thereunder, because it establishes a due,
                                                    issuers and other persons using its                  burden on non-MMs as only MMs                            fee, or other charge imposed by the
                                                    facilities and does not unfairly                     require multiple ATPs to satisfy quoting                 Exchange.
                                                    discriminate between customers,                      obligations on the Exchange. To the                         At any time within 60 days of the
                                                    issuers, brokers or dealers.                         extent that the proposed change results                  filing of such proposed rule change, the
                                                       The Exchange believes that the                    in more competitive quoting, the                         Commission summarily may
                                                    proposed change to ATP fees is                       proposed change is pro-competitive and                   temporarily suspend such rule change if
                                                    reasonable and not unfairly                          should result in increased opportunities                 it appears to the Commission that such
                                                    discriminatory because the fees are                  to trade as well as enhanced price                       action is necessary or appropriate in the
                                                    within the general range of similar fees             discovery to the benefit of all market                   public interest, for the protection of
                                                    assessed for trading permits on other                participants.                                            investors, or otherwise in furtherance of
                                                    exchanges.11 In addition, the proposed                  Similarly, the changes to the Messages                the purposes of the Act. If the
                                                                                                         Fees would not place an unfair burden                    Commission takes such action, the
                                                      7 See Fee Schedule, Section II (Monthly Excessive  on competition as it would continue to                   Commission shall institute proceedings
                                                    Bandwidth Utilization Fees) (‘‘EBUF’’) (describing   encourage efficient use of Exchange                      under Section 19(b)(2)(B) 16 of the Act to
                                                    both the Messages to Contracts Traded Ratio Fee      bandwidth and would apply to all
                                                    and the Order to Trade Ratio Fee, which comprises                                                             determine whether the proposed rule
                                                                                                         market participants that are subject to
                                                    the EBUF, and noting that if an ATP Holder is liable                                                          change should be approved or
                                                    for either or both fees in a given month, that firm  the Messages Fee.
                                                                                                            To the extent that these purposes are                 disapproved.
                                                    would only be charged the greater of the two fees).
                                                    The Exchange is not modifying the Order to Trade     achieved, the Exchange believes that the                 IV. Solicitation of Comments
                                                    Ratio Fees.
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                       8 Currently, the Exchange has set the ratio at 1                                                             Interested persons are invited to
                                                                                                            Schedule, NYSE Arca GENERAL OPTIONS and
                                                    contract for every 5,000 messages.                      TRADING PERMIT (OTP) FEES, available here,            submit written data, views, and
                                                       9 15 U.S.C. 78f(b).
                                                                                                            https://www.nyse.com/publicdocs/nyse/markets/         arguments concerning the foregoing,
                                                       10 15 U.S.C. 78f(b)(4) and (5).                      arca-options/NYSE_Arca_Options_Fee_                   including whether the proposed rule
                                                       11 See Chicago Board of Options Exchange             Schedule.pdf (imposing a sliding scale of fees,
                                                                                                            starting at $6,000 per month for the first trading
                                                                                                                                                                  change is consistent with the Act.
                                                    (‘‘CBOE’’) fee schedule, Market-Maker Trading
                                                    Permit Sliding Scale, p. 7, available here, http://     permit down to $1,000 per month for the fifth and
                                                                                                            additional permits).                                    14 15 U.S.C. 78s(b)(3)(A).
                                                    www.cboe.com/publish/feeschedule/CBOEFee
                                                                                                              12 15 U.S.C. 78f(b)(8).                               15 17 CFR 240.19b–4(f)(2).
                                                    Schedule.pdf (charging $5,000 per trading permit
                                                    for the first ten permits); NYSE Arca Options Fee         13 See supra note 11.                                 16 15 U.S.C. 78s(b)(2)(B).




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                                                    47590                         Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices

                                                    Comments may be submitted by any of                       SECURITIES AND EXCHANGE                               2017. Specifically, the Exchange
                                                    the following methods:                                    COMMISSION                                            proposes to amend its marketing fee
                                                                                                                                                                    program to assess the fee in Russell
                                                    Electronic Comments                                       [Release No. 34–81827; File No. SR–CBOE–
                                                                                                                                                                    2000 Index (‘‘RUT’’) options at a rate of
                                                                                                              2017–063]
                                                       • Use the Commission’s Internet                                                                              $0.30 per contract. The Exchange
                                                    comment form (http://www.sec.gov/                         Self-Regulatory Organizations;                        currently assess its marketing fee for
                                                    rules/sro.shtml); or                                      Chicago Board Options Exchange,                       penny classes at a rate of $0.25 and non-
                                                                                                              Incorporated; Notice of Filing and                    penny classes at the rate of $0.70 per
                                                       • Send an email to rule-comments@                                                                            contract. CBOE believes assessing the
                                                    sec.gov. Please include File Number SR–                   Immediate Effectiveness of a Proposed
                                                                                                              Rule Change Relating to the Fees                      marketing fee in RUT options will allow
                                                    NYSEAMER–2017–22 on the subject                                                                                 CBOE Market-Makers (including DPMs,
                                                    line.                                                     Schedule
                                                                                                                                                                    PMMs, and LMMs) to compete better for
                                                    Paper Comments                                            October 5, 2017.                                      order flow in RUT options. Footnote 6
                                                                                                                 Pursuant to Section 19(b)(1) of the                of the Fees Schedule currently exempts
                                                      • Send paper comments in triplicate                     Securities Exchange Act of 1934 (the                  Underlying Symbol List A symbols from
                                                    to Secretary, Securities and Exchange                     ‘‘Act’’),1 and Rule 19b–4 thereunder,2                the marketing fee. Footnote 34 of the
                                                    Commission, 100 F Street NE.,                             notice is hereby given that on                        Fees Schedule identifies RUT as an
                                                    Washington, DC 20549–1090.                                September 29, 2017, Chicago Board                     Underlying Symbol List A symbol.
                                                                                                              Options Exchange, Incorporated (the                   Thus, the Exchange is amending
                                                    All submissions should refer to File                      ‘‘Exchange’’ or ‘‘CBOE’’) filed with the              footnote 6 of the Fees Schedule to
                                                    Number SR–NYSEAMER–2017–22. This                          Securities and Exchange Commission                    provide that the marketing fee will
                                                    file number should be included on the                     (the ‘‘Commission’’) the proposed rule                apply to RUT. RUT will remain an
                                                    subject line if email is used. To help the                change as described in Items I, II, and               Underlying Symbol List A symbol in all
                                                    Commission process and review your                        III below, which Items have been                      other respects.
                                                    comments more efficiently, please use                     prepared by the Exchange. The                           The Exchange also proposes to make
                                                    only one method. The Commission will                      Commission is publishing this notice to               a non-substantive amendment to the
                                                    post all comments on the Commission’s                     solicit comments on the proposed rule                 term ‘binaries’ in footnote 6 of the Fees
                                                    Internet Web site (http://www.sec.gov/                    change from interested persons.                       Schedule.
                                                    rules/sro.shtml). Copies of the
                                                    submission, all subsequent                                I. Self-Regulatory Organization’s                     2. Statutory Basis
                                                    amendments, all written statements                        Statement of the Terms of Substance of
                                                                                                                                                                       The Exchange believes the proposed
                                                    with respect to the proposed rule                         the Proposed Rule Change
                                                                                                                                                                    rule change is consistent with the
                                                    change that are filed with the                               The Exchange seeks to amend the                    Securities Exchange Act of 1934 (the
                                                    Commission, and all written                               Fees Schedule.                                        ‘‘Act’’) and the rules and regulations
                                                    communications relating to the                               The text of the proposed rule change               thereunder applicable to the Exchange
                                                    proposed rule change between the                          is available on the Exchange’s Web site               and, in particular, the requirements of
                                                    Commission and any person, other than                     (http://www.cboe.com/AboutCBOE/                       Section 6(b) of the Act.3 Specifically,
                                                    those that may be withheld from the                       CBOELegalRegulatoryHome.aspx), at                     the Exchange believes the proposed rule
                                                    public in accordance with the                             the Exchange’s Office of the Secretary,               change is consistent with the Section
                                                    provisions of 5 U.S.C. 552, will be                       and at the Commission’s Public                        6(b)(5) 4 requirements that the rules of
                                                    available for Web site viewing and                        Reference Room.                                       an exchange be designed to prevent
                                                    printing in the Commission’s Public                       II. Self-Regulatory Organization’s                    fraudulent and manipulative acts and
                                                    Reference Room, 100 F Street NE.,                         Statement of the Purpose of, and                      practices, to promote just and equitable
                                                    Washington, DC 20549, on official                         Statutory Basis for, the Proposed Rule                principles of trade, to foster cooperation
                                                    business days between the hours of                        Change                                                and coordination with persons engaged
                                                    10:00 a.m. and 3:00 p.m. Copies of the                                                                          in regulating, clearing, settling,
                                                    filing also will be available for                            In its filing with the Commission, the
                                                                                                                                                                    processing information with respect to,
                                                    inspection and copying at the principal                   Exchange included statements
                                                                                                                                                                    and facilitating transactions in
                                                    office of the Exchange. All comments                      concerning the purpose of and basis for
                                                                                                                                                                    securities, to remove impediments to
                                                    received will be posted without change;                   the proposed rule change and discussed
                                                                                                                                                                    and perfect the mechanism of a free and
                                                    the Commission does not edit personal                     any comments it received on the
                                                                                                                                                                    open market and a national market
                                                    identifying information from                              proposed rule change. The text of these
                                                                                                                                                                    system, and, in general, to protect
                                                    submissions. You should submit only                       statements may be examined at the
                                                                                                                                                                    investors and the public interest.
                                                    information that you wish to make                         places specified in Item IV below. The
                                                                                                                                                                    Additionally, the Exchange believes the
                                                    available publicly. All submissions                       Exchange has prepared summaries, set
                                                                                                                                                                    proposed rule change is consistent with
                                                    should refer to File Number SR–                           forth in sections A, B, and C below, of
                                                                                                                                                                    the Section 6(b)(5) 5 requirement that
                                                    NYSEAMER–2017–22, and should be                           the most significant aspects of such
                                                                                                                                                                    the rules of an exchange not be designed
                                                    submitted on or before November 2,                        statements.
                                                                                                                                                                    to permit unfair discrimination between
                                                    2017.                                                     A. Self-Regulatory Organization’s                     customers, issuers, brokers, or dealers.
                                                      For the Commission, by the Division of                  Statement of the Purpose of, and                         In particular, the Exchange believes
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Trading and Markets, pursuant to delegated                Statutory Basis for, the Proposed Rule                applying the marketing fee to RUT
                                                    authority.17                                              Change                                                options is equitable, reasonable, and not
                                                    Brent J. Fields,                                                                                                unfairly discriminatory as the marketing
                                                                                                              1. Purpose                                            fee to be applied to RUT options is
                                                    Secretary.
                                                                                                                 The Exchange proposes to amend its                 similar to the marketing fee currently
                                                    [FR Doc. 2017–21998 Filed 10–11–17; 8:45 am]
                                                                                                              Fees Schedule, effective October 2,
                                                    BILLING CODE 8011–01–P                                                                                            3 15    U.S.C. 78f(b).
                                                                                                                1 15 U.S.C. 78s(b)(1).                                4 15    U.S.C. 78f(b)(5).
                                                      17 17   CFR 200.30–3(a)(12).                              2 17 CFR 240.19b–4.                                   5 Id.




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Document Created: 2018-10-25 10:04:56
Document Modified: 2018-10-25 10:04:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 47588 

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